Exit Planning

Your business is an important financial asset. Your future plans assume it will grow in value, and that you will be able to capture and monetize (fancy word meaning turn your equity value into money) that value. It won't happen without a strategy and an operational plan.

Your Value Strategy should include three components:

1. Establish the current value of your business today.2. Determine the future value of your business based on your dream scenario (also known as your exit strategy).3. Create an operational plan to optimize and then capture the maximum value within your designated timeframe.

How do you capture the value of a business?

(Exit Strategy Alternatives)

1. Sale

This is the sale of your business to a third party through a merger or acquisition. Value optimization is based on identifying and then leveraging the industry value drivers. In other words, transform your business into a business your potential acquirers want to acquire.

2. Succession

This is the transfer of your business to a partner, family member or key employee. Value optimization is based on professional estate planning and transforming your business, if necessary, into a business your successors can successfully manage.

3. Dissolution

This is the orderly consumption and/or sale of assets. Value optimization is based on managing the business for cash and the profitable sale of depreciated assets.

You can clearly see that each alternative requires its own operational plan. First decide where you want to end up and then plan and execute to maximize that chosen strategy - which is your customized Value Strategy.